Slide in LIC's collections drags down overall growth.
Suresh Parthasarathy
BL Research Bureau The continuous downturn in equity markets and severe
correction since October seems to have finally hit the collections mopped up by
insurance companies. At the start of this year, the industry's new premium
collections were growing at an impressive 118 per cent. This growth rate was
down to 11.4 per cent in October. A continuous slide in market leader LIC's
collection has dragged down overall growth.
Last October, private insurers registered double-digit growth in new premium
collected.
This October, growth hovered in the single digits. According to numbers
compiled by Motilal Oswal Securities, Aviva Life witnessed a decline of 33.7
per cent in October and the weighted new premium income has dropped to Rs 46.5
crore, followed by Tata AIG (minus 29.4 per cent).
The largest private player ICICI Prudential has seen a 29.1 per cent decline in
new premium collections for October. Some private players who managed
reasonable growth were MetLife, which registered a growth of 91 per cent
followed by SBI Life (52 per cent) and Reliance Life (48.8 per cent). HDFC SLIC
and Birla Sun Life had a single digit growth.
While October numbers aren't heartening, year to date growth remains strong for
most players. SBI Life, Reliance and Kotak OM Life all grew by triple digit.
ICICI Pru's premium collections grew by 23 per cent, year to date, followed by
Tata AIG- 30 per cent (this is despite their partner AIG under going turbulent
times). LIC and Bajaj Allianz were among the insurers who share, reckoned on
the basis of new premium income.
LIC's collections declined by 30 per cent while Bajaj Alllianz, 7.9 per cent
respectively. For insurance industry, the second half accounts for more than 60
per cent of the collection and the last quarter January-March accounts for 40
per cent owing to the tax planning and aggressive marketing by the insurers.
http://www.thehindubusinessline.com/2008/12/12/stories/2008121251891100.htm
I keep six honest serving-men (They taught me all I knew); Their names are
What, Why, When, How, Where and Who.
-- Rudyard Kipling
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